Low Cost Investing

    March 8, 2004

The Internet is the most dynamic and effective investing tool ever invented.Those who have computers have access to information that will make them as successful as most stock brokers if theyare willing to put in the necessary time and effort.From the most recent neophyte to the seasoned day trader there is a wealth of information waiting to be used. And much of it is free.

The nost conservative investor can use this available website at no cost at all. They can log on http://treasurydirect.gov,open an account and invest in ultra safe US securities that will provide no worry sleep at night.All transactions can be made online. Funds can be invested directly from one’s bank account and the earned interest will be deposited in the designated bank at semi-annual intervals. These days interest rates are at an all time low. A ten year bond pays around 4% and using the rule of 72 it will require 18 years to double your money. This investment system has a multitude of participants who rate safety of principal as the number one concern.The interest income is state tax free.

Obviously an investorwould desire a better return on funds invested. A proven method is available in the stock market. In good times and bad the stock market has averaged around 12% return. Many potential investors avoid the stock market because of fear of losing all their investment. With Social Security in the spotlight and its future in doubt there is talk of investing at least some of the worker’s social security in the stock market.It seems that even greater interest in this market will prevail. There is available an excellent low cost method of investing in equities. It is the National Association of Investors Corporation, NAIC. For a small annual fee a person can become a menber. All information is available at:www.better-investing.org. The fee, around $30.00, includes a subscription to the magazine, Better Investing, which alone is worth the annual fee.The memership opens the great world of investing at low cost. A member can purchase as little as one share of stock in any of the well known participating companies, reinvest the dividends all at no cost other than the price of the stock. NAIC is a great learning institution and teaches its subscribers to double their money in five years. That requires a 15% annual return. NAIC has thousands of members worldwide and its ranks are filled with millionaires.

Libraries are filled with “How To” books on investing. One ebook is available for less than $5.00. It is:From The Cotton Patch To The Country Club, by Charles Warren. It is available at:www.1stBooks.com.

Most brokerage firms have web sites where investing information is available at no cost. www.msn.com is one that has the best charting available. www.Schwab.com is an excellent source of investment information An account at that firm will provide low brokerage fees and all the assistance an invesror desires. It is indeed the information age for the investor.

Claude Eldridge is a retired Aerospace Company executive. He has many years of experience of invensting. He has first hand knowledge of the subjects in this article.